Monday, August 8, 2011

Analysis of the AUD against the USD

The graph above is the movement of the Australian Dollar(AUD) against the US Dollar(USD) for a one year period. And there is some indicators there that shows that the next few days would see a drop in the AUD.

Also AUD having hit its historical high is bound to fall as the currency is not bound to continue rising forever. However, I believe the AUD is able to make a short lived comeback in the near future and then falling off after. There are many factors to take into consideration such as the interest rates of both countries, the economy of both countries and many more.

My advice is that if you have some spare AUD, invest it in some other currency as I believe the long term AUD seems bearish and the AUD is bound to fall further breaking the parity resistance and falling lower.